Calpers Sells $6 Billion of Private Equity at Discount

The video discusses the movement of large funds into private equity, focusing on CalPERS' strategy to manage its $50 billion holdings. It highlights the complexities of navigating private equity, including the use of discounts and secondary markets. The discussion also covers efforts to cut out intermediaries to save on fees and an accounting maneuver to manage cash flow effectively.

What was the primary reason for CalPERS to sell a portion of its private equity holdings at a discount?

• To comply with new regulatory requirements

• To diversify into other asset classes

• To reduce the complexity of managing large holdings

• To quickly raise cash for new investments

Why does CalPERS want to manage its investments internally?

• To avoid paying fees to external managers

• To increase investment returns

• To focus on sustainable investments

• To comply with government regulations

What advantage does CalPERS have that allows it to invest directly in private companies?

• Advanced technology

• Government backing

• A large asset base

• Exclusive market access

What was the purpose of CalPERS delaying certain actions until after the fiscal year?

• To optimize cash management and financial reporting

• To align with new fiscal policies

• To comply with international standards

• To wait for better market conditions

How did CalPERS benefit from the accounting maneuver discussed?

• By avoiding idle cash on the balance sheet

• By increasing their investment portfolio

• By reducing operational costs

• By gaining a competitive market advantage